Broker TP ICAP first half profit falls as market volatility eases

TP ICAP Group Plc, the world's largest inter-dealer broker, reported on Tuesday a lower half-year profit as trading in its global broking and energy and commodities businesses tailed off from the high comparable base marked by the pandemic. The firm, which brings together buyers and sellers in the financial, energy and commodity markets, said its adjusted pretax profit was 88 million pounds ($121.72 million) for the six months ended June 30, compared with 136 million pounds a year ago.

TP ICAP Group Plc, the world's largest inter-dealer broker, reported on Tuesday a lower half-year profit as trading in its global broking and energy and commodities businesses tailed off from the high comparable base marked by the pandemic.

The firm, which brings together buyers and sellers in the financial, energy, and commodity markets, said its adjusted pretax profit was 88 million pounds ($121.72 million) for the six months ended June 30, compared with 136 million pounds a year ago. "Secondary markets in the first half of 2021 continued to be uncommonly quiet," said chief executive Nicolas Breteau.

The company said it expects full-year revenue to be broadly in line with 2020 on a constant currency basis, but warned the rise in the pound against the dollar and investment spending will mean a lower full-year operating margin than a year ago. Trading-related firms across most asset classes have witnessed activity in their platforms fall from the 2020 levels when the onset of the COVID-19 pandemic saw decades-high market volatility globally.

TP ICAP, which in March completed the $700 million purchase of institutional trading network Liquidnet, said activity could pick up again if clients rebalance their portfolios "in response to inflation". The firm said it expects to have "the required number of brokers" based in the European Union before the end of the year as it adjusts to Britain's exit from the bloc. In January it said it had to stop serving some EU clients because it did not have enough staff in its new Paris hub to meet French regulatory requirements.

($1 = 0.7230 pounds)